Don’t blame telcos for prepaid tax, PKR tells Najib

PKR strategic director Rafizi Ramli pointed out today that the six per cent service
 tax is levied on all services specified by the government. 

KUALA LUMPUR, Sept 10 — Datuk Seri Najib Razak cannot plead ignorance over the move by telecommunication companies to impose a six per cent service tax on all prepaid mobile telecommunication sales, PKR said today.

PKR strategic director Rafizi Ramli pointed out the six per cent service tax is levied on all services specified by the government, and that it had nothing to do with the telecommunication companies’ decision to pass the burden to consumers.

“It is unbecoming of a prime minister to plead ignorance that his government’s decision to increase the service tax to six per cent effective from 1 January 2011 has nothing to do with the telecommunication companies’ decision to pass the tax burden to consumers.

Telcos to charge 6% service tax on prepaid purchases from Sept 15

From Sept 15, telecommunication companies (telcos) will cease to absorb the 6% service tax on mobile prepaid services and customers would have to bear the extra cost.

In a joint statement today, eight telco providers announced that the tax will be applicable to purchases of pre-paid reloads and pre-paid starter/SIM packs and pre-paid customers were informed via SMS starting at noon.

The telcos are Celcom Axiata Bhd, Maxis Bhd, DiGi Telecommunications Sdn Bhd, Tune Talk Sdn Bhd, Merchantrade Asia Sdn Bhd, Salamfone Sdn Bhd, XOX Bhd and IMEtel.